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Dividend proposal

Dividend proposal

A dividend proposal is the board's proposal to the general meeting on how large a dividend to pay.

What is a dividend proposal?

A dividend proposal (Swedish: utdelningsförslag) is the board's proposal to the general meeting on a dividend, such as the amount per share and payment date. The proposal must be accompanied by a reasoned statement explaining why the dividend is justifiable given the company's finances.

 

From proposal to payment

As a main rule, the meeting may not resolve on a larger dividend than the board has proposed, and the dividend is limited by the company's unrestricted equity. In a non-CSD company, dividends are normally paid to the shareholder entered in the share ledger.

How NVR works for limited companies
Henrik Kristensen, NVR
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Related terms

Dividend

A dividend is when a limited company distributes part of its profit to its shareholders.

Unrestricted equity

Unrestricted equity is the part of equity that may be distributed to shareholders.

Board of directors

The board of directors is the body elected by the general meeting to manage the company.